Understanding Contracts for Custom-Built Software: Rights, Duties, and Enforceability, Slides of Software Engineering

Download Understanding Contracts for Custom-Built Software: Rights, Duties, and Enforceability and more Slides Software Engineering in PDF only on Docsity! Professional Practices “Computer Contracts” 2 Contents • What is a Contract • Contract for the supply of custom built software • Other types of software services contract 5 What is a Contract “While optimists make the best deal makers, pessimists make the best contract writers” Hilary Pearson 6 What is a Contract • A contract – Should be set out in a clear and logical manner – should be complete and consistent – Should have no ambiguity – Should be free of doubts regarding the rights and duties of concerned parties 7 What is a Contract • There are four types of contractual arrangement which are widely used in connection with the provision of software services – Fixed price – Contract hire – Time and materials – Consultancy 10 The Introductory Section • The introductory section states that it is an agreement between the parties whose names and registered addresses are given. • It is dated and signed by the authorized representatives of the parties. 11 What is to be Produced • Contract must state what is to be produced. • Two level references is normally used. 12 What Is to be Delivered • Producing software is not simply handing over the text of program. • Some other possibilities are – Source code – Command files for building the executable code from the source and installing it. – Documentation of the design and code. – Different manuals – Test data and test results 15 Payment Terms • Standard terms and conditions will specify the payment conditions like “payment shall become due within thirty days of the date of issue of an invoice. If payment is delayed by more than thirty days from due date, the company shall have the right to terminate the contract or to apply a surcharge at an interest rate of 2 per cent.” 16 Calculating Payments for Delays and Changes • The contract should make provision for payments to compensate the wasted efforts. • It must specify the process by which these extra payments are to be calculated. 17 Penalty Clauses • Delays caused by suppliers are handled by penalty clauses. 20 Contract Hire 21 Contract Hire • Contract hire agreements are very much simpler than fixed price contracts. • Reason is the much less involvement and responsibility of supplier. 22 Times and Materials 25 Consultancy Contracts • Use of consultants is now widespread in both private and public body. • Consultancy projects are usually undertaken for a fixed price but the form of contract is very much simpler. 26 Liability for Defective Software 27 Liability for defective software • There are laws present to ensure the quality of products and goods delivered to a customer. • Quality of goods include their – State and condition – Fitness for all required purposes – Freedom from minor defects – Safety – durability